Alex Salmond has warned the Chancellor not to jeopardise Scotland’s economic
recovery in next week’s Budget after new figures showed another drop in
unemployment.

The number of Scots out of work fell by 16,000 to 218,000 between November last year and January, bucking a trend in the rest of the UK that saw the total increase to a 17-year high.

Although the unemployment rate north of the Border remains slightly above the British average, the figures also showed the first fall in the number of Jobseekers’ Allowance claimants since September.

The First Minister and Michael Moore, the Scottish Secretary, welcomed the fall but Citizens Advice Scotland (CAS) warned it was mainly thanks to temporary jobs over the Christmas period.

However, Mr Salmond insisted the decrease was thanks to his administration’s economic policies and urged George Osborne not to put the recovery at risk by cutting public spending too fast and too deep.

Speaking at a press conference at Bute House, his official residence in Edinburgh, the First Minister said: “For four consecutive monthly labour market statistics releases Scotland has been the only UK nation with rising employment and falling unemployment.

“With the UK Budget a week away, these statistics are a timely reminder that the UK Government must not risk the recovery we are building in Scotland or undermine the positive path Scotland’s economy is taking.”

He reiterated his call for the Chancellor to cancel a planned increase in fuel duty, arguing that high oil prices have already given the Treasury an unexpected £4 billion windfall.

The Federation of Small Businesses in Scotland released a survey yesterday showing nine out of ten of its members say the high cost of fuel is hurting their companies.

The Scottish unemployment rate now stands at 8.1 per cent, just higher that the UK figure of eight per cent.

However, the total number of people out of work across Britain increased by 27,000 in the three months to January to 2.53 million, the highest figure since 1994.

The number of Scots in work increased by 8,000 over the same period, taking the total to more than 2.4 million. In February, the number Jobseekers' Allowance claimants fell by 2,100 to 137,600.

Mr Moore welcomed the figures but added: “We cannot be complacent. At next week's budget, we will set out further details of the Government's plans for returning the country to sustainable growth with a balanced economy.”

But Lucy McTernan, chief executive of CAS, said the figures “mask” an economic crisis. She said: “Much of the reduction that has been reported today, for example, will have been due to the fact that some people got very temporary jobs over the Christmas/New Year period."

Andy Kerr, Labour’s finance spokesman, said more recent figures show Scottish unemployment has increased again to 218,000, with the number of young people out of work rising 4.2 per cent between January and February.

Meanwhile, separate figures show public sector employment has fallen by 18,000 to 595,800 over the past year. But the total number of devolved civil servants increased by 200 to 17,700, despite cuts in public spending.